‎Capital Market Operators Seek Extension On Recapitalization Deadline ‎

‎The Capital Market Academics of Nigeria (CMAN) convened a roundtable on Saturday, January 24, 2026, to discuss the implications of the new minimum capital requirements for regulated entities in Nigeria.

‎The theme of the roundtable was “Deconstructing the New Minimum Capital Requirements for Regulated Entities in Nigeria.”

‎The event, moderated by Mr. Boason Omofaye of Arise TV, featured expert contributions from Dr. Bayo Olugbemi (Past President, CIBN), Mrs. Fiona Ahimie (1st Vice President, CIS), Mr. Garba Kurfi (Board member, SEC), Mr. Tunde Amolegbe (Past President, CIS), Mrs. Yvonne Akintomide (MD, Regius Securities), Professor Lionel Effiong (Professor of Economics, UniCal), Barr. Charles Udora (former member, SEC Board), and Professor Chris Kalu (Professor of Economics, UniZik).

‎The roundtable was attended by key stakeholders in the capital market, including representatives from the Securities and Exchange Commission (SEC), the Nigerian Stock Exchange, and other regulatory bodies. The discussion centered on the proposed compliance deadline of June 30, 2027, and the need for a more feasible timeline.

‎In a communique issued at the end of the roundtable, CMAN recommended extending the timeline by an additional six months, preferably to December 2027, to allow market operators to raise capital under more favorable market conditions. The recommendation was made in recognition of the fact that 2027 is an election year in Nigeria, often characterized by investment climate uncertainties.

‎The participants also noted that the scale of the increase for some categories of operators, especially Broker Dealers, appears disproportionate to the associated risk. In this regard, SEC was advised to further engage market players with a view to revisiting the magnitude of the increases.

‎Other key recommendations from the roundtable include:

‎- A clear distinction between conventional and non-interest capital market functions within the framework is necessary, given their different risk profiles, operational constraints, and restrictions on leverage and speculative activities.

‎- Retained earnings should be allowed to count as part of qualifying capital, subject to appropriate verification.

‎- Regulatory support measures, including possible fee waivers or discounts in association with Corporate Affairs Commission and other regulatory bodies, streamlined approval processes, and clearer guidance on mergers, acquisitions, and business combinations, would help minimize recapitalization costs and accelerate compliance.

‎In his remarks, the President of CMAN, Professor Uche Uwaleke, FCMA, commended the SEC for its commitment to strengthening the Nigerian capital market and pledged the organization’s continued support to the Commission in the discharge of its mandate.

‎The communique concluded by urging the SEC to consider the recommendations and provide further clarifications where necessary, to ensure that the new minimum capital requirements framework enhances market resilience, supports innovation, and promotes inclusive growth of the Nigerian capital market.